Wednesday, February 13, 2008

Organization Model in ERP (2)

Credit Control Area for credit management

SAP applications allows the user to manage the customer credit limits by credit control area.

"A credit control area is an organizational unit for specifying and controlling customer credit limits. A credit control area can include one or more company codes. It is not possible to divide a company code into several credit control areas."

The Credit Control Area provide the flexiblity to to users when they define the credit limits. When the customer can be used in multiple company codes, the user does not have to enter the the credit limit for each company code. The customer credit limits can be managed at a higher level.

E-Business Suite does not have a similar business entity in its organization model. The customer (credit) profiles are entered globally.